How is wabisabi a scaling improvement? Is it because fees are cheaper? Never seen any numbers how much one actually saves in fees

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Assume you have a utxo, and want to spend it privately.

If you do only single user transactions, you would need probably 50 transactions, creating 200 coins, and spending 180 of them, that's a lot of blockspace, and you didn't create much ambiguity of where the und money went.

On the other hand, with WabiSabi it might give you sufficient privacy to make 1 single transaction, spending 1 coin and creating 5 coins. That's a lot less blockspace.

I’m not sure I’m understanding where those huge numbers come from? Are those to achieve some sort of obfuscation if spending one utxo without collaboration with others?

Yes.